Internet-Based Virtual Futures Market
PROCEEDINGS
An Sing Chen, Department of Finance, National Chung-Cheng University, Taiwan ; Jyun-Cheng Wang, Institute of Technology Management, National Tsing-Hua University, Taiwan
E-Learn: World Conference on E-Learning in Corporate, Government, Healthcare, and Higher Education, in Vancouver, Canada ISBN 978-1-880094-57-0 Publisher: Association for the Advancement of Computing in Education (AACE), San Diego, CA
Abstract
Internet-based virtual futures markets (VFMs) have been used in predicting election results and movie ticket sales. We construct an Internet-based VFM to predict an underlying stock price. Results of Granger causality tests and tests of directional accuracy show that a VFM with only a small number of participants (75) is able to generate informative futures prices useful in the prediction of the underlying stock price. Moreover the participants were not professional investors but merely undergraduate finance students with only a cursory introduction to futures trading. Our results provide additional evidence supporting the use of VFMs in forecasting and show that VFMs are powerful forecasting tools.
Citation
Chen, A.S. & Wang, J.C. (2005). Internet-Based Virtual Futures Market. In G. Richards (Ed.), Proceedings of E-Learn 2005--World Conference on E-Learning in Corporate, Government, Healthcare, and Higher Education (pp. 2880-2884). Vancouver, Canada: Association for the Advancement of Computing in Education (AACE). Retrieved August 6, 2024 from https://www.learntechlib.org/primary/p/21637/.
© 2005 Association for the Advancement of Computing in Education (AACE)
